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Altra Industrial Motion Corp. (AIMC)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$45.57 - $120.88$69.68
Multi-Stage$30.95 - $33.83$32.36
Blended Fair Value$51.02
Current Price$59.75
Upside-14.61%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS0.00%0.00%0.340.280.430.680.000.000.000.000.000.00
YoY Growth--21.86%-34.17%-37.39%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.57%0.72%0.77%3.88%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)127.00
(-) Cash Dividends Paid (M)22.30
(=) Cash Retained (M)104.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)25.4015.889.53
Cash Retained (M)104.70104.70104.70
(-) Cash Required (M)-25.40-15.88-9.53
(=) Excess Retained (M)79.3088.8395.18
(/) Shares Outstanding (M)65.3865.3865.38
(=) Excess Retained per Share1.211.361.46
LTM Dividend per Share0.340.340.34
(+) Excess Retained per Share1.211.361.46
(=) Adjusted Dividend1.551.701.80
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$45.57$69.68$120.88
Upside / Downside-23.73%16.62%102.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)127.00135.26144.05153.41163.38174.00179.22
Payout Ratio17.56%32.05%46.54%61.02%75.51%90.00%92.50%
Projected Dividends (M)22.3043.3567.0393.62123.37156.60165.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)39.3639.7340.10
Year 2 PV (M)55.2756.3257.38
Year 3 PV (M)70.0872.0974.14
Year 4 PV (M)83.8687.0990.40
Year 5 PV (M)96.66101.32106.17
PV of Terminal Value (M)1,677.931,758.971,843.12
Equity Value (M)2,023.152,115.532,211.32
Shares Outstanding (M)65.3865.3865.38
Fair Value$30.95$32.36$33.83
Upside / Downside-48.21%-45.84%-43.39%

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